How do you put a value on a paysite? - GoFuckYourself.com

onlytease · 01-18-2006, 11:20 AM

Just interested how you would put a value on a site.

We are looking at possibly buying another established site, that has been running for a few years with a solid customer base (and is successfull in their niche).

We know their turnover and also their net profit. So ballpark figures of how you work out a value, what multiple of the net profit would you be looking at?

Cheers all

Paul

SGS · 01-18-2006, 11:24 AM

Is it exclusive content?

onlytease · 01-18-2006, 11:25 AM

Quote:

Originally Posted by SGS

Is it exclusive content?

Yes it is.

TheDoc · 01-18-2006, 11:31 AM

It depends on a bit of things, on going content costs and such is important. But I would say atleast from 2 years net to 2 years gross, in that range. If the owners have put in a rather large amount of money in content, then add another year or two.

SGS · 01-18-2006, 11:31 AM

Quote:

Originally Posted by onlytease

Yes it is.

And is it video / DVD content too?

TheDoc · 01-18-2006, 11:34 AM

Oh, and the more inhouse sales, the more the site is worth. If most sales are webmaster based, it's worth a lot less.

SilentKnight · 01-18-2006, 11:34 AM

One way of lookin' at it is base the value on a year's gross revenues for the site. Some folks will add an additional amount depending on factors such as exclusive content, namebrand recognition of the site, copyright ownership or licensing issues, etc.

I'd also ask a few experienced webmaster pals who's judgement I trust to offer their opinion on what they think the site's worth.

onlytease · 01-18-2006, 02:28 PM

cheers all for comments

EroticySteve · 01-18-2006, 02:35 PM

A solid history of financials that can be audited are a good start.

From there, look at current revenues along with projections for the upcoming years and months.

Add assets.

Subract liabilities

Most businesses then have a multiplier by which the value is factored with.

That's a simple formula but along the right lines.

01-18-2006, 11:20 AM	#1
onlytease Confirmed User Join Date: Sep 2003 Posts: 1,553	How do you put a value on a paysite? Just interested how you would put a value on a site. We are looking at possibly buying another established site, that has been running for a few years with a solid customer base (and is successfull in their niche). We know their turnover and also their net profit. So ballpark figures of how you work out a value, what multiple of the net profit would you be looking at? Cheers all Paul __________________ Paul L - OnlyTease / Only-Opaques / Only-Secretaries / OnlySilkandSatin / Art-Lingerie / Layered-Nylons Sponsor program at www.otcash.com

01-18-2006, 11:24 AM	#2
SGS Confirmed User Industry Role: Join Date: Dec 2002 Location: Mallorca - Nottingham Posts: 5,176	Is it exclusive content? __________________ See sig...

01-18-2006, 11:31 AM	#4
TheDoc Too lazy to set a custom title Industry Role: Join Date: Jul 2001 Location: Currently Incognito Posts: 13,827	It depends on a bit of things, on going content costs and such is important. But I would say atleast from 2 years net to 2 years gross, in that range. If the owners have put in a rather large amount of money in content, then add another year or two. __________________ ~TheDoc - ICQ7765825 It's all disambiguation

01-18-2006, 11:34 AM	#6
TheDoc Too lazy to set a custom title Industry Role: Join Date: Jul 2001 Location: Currently Incognito Posts: 13,827	Oh, and the more inhouse sales, the more the site is worth. If most sales are webmaster based, it's worth a lot less. __________________ ~TheDoc - ICQ7765825 It's all disambiguation

01-18-2006, 02:28 PM	#8
onlytease Confirmed User Join Date: Sep 2003 Posts: 1,553	cheers all for comments __________________ Paul L - OnlyTease / Only-Opaques / Only-Secretaries / OnlySilkandSatin / Art-Lingerie / Layered-Nylons Sponsor program at www.otcash.com

01-18-2006, 11:34 AM	#7
SilentKnight Megan Fox's fluffer Industry Role: Join Date: Oct 2005 Location: shooting pool in Elysium Posts: 24,818	One way of lookin' at it is base the value on a year's gross revenues for the site. Some folks will add an additional amount depending on factors such as exclusive content, namebrand recognition of the site, copyright ownership or licensing issues, etc. I'd also ask a few experienced webmaster pals who's judgement I trust to offer their opinion on what they think the site's worth.

01-18-2006, 02:35 PM	#9
EroticySteve Confirmed User Join Date: Mar 2005 Location: The Sunshine State Posts: 4,365	A solid history of financials that can be audited are a good start. From there, look at current revenues along with projections for the upcoming years and months. Add assets. Subract liabilities Most businesses then have a multiplier by which the value is factored with. That's a simple formula but along the right lines. __________________ You deserve to make more money. I'll help you do that. Our affiliates earn up to $3/email or $107/sale email steve <at> eroticy.com - icq 290153464